European markets are cautiously optimistic, with the FTSE trading 0.15% higher ahead of the G20 gathering of Presidents and Prime Ministers later this week, which will bring the China-US trade dispute back on the agenda.
The DAX is under more pressure than other gauges, being weighed down by a decline in Daimler shares after the company issued its third profit warning this year. In London services companies are trading stronger while travel firms and supermarkets are pulling the index lower.
The guessing and second-guessing of the potential outcome of the Trump-Xi talks expected at some point during the G20 meetings at the end of this week, will keep the markets on their toes.
Tech stocks and related companies will also be in focus after the US blacklisted five Chinese IT firms involved in military-related applications Friday fuelling investors’ concerns that China will respond with a similar countermeasure.
Turkish lira in spotlight as opposition wins Istanbul spot
The beleaguered Turkish lira is back in the spotlight after the re-run of the Istanbul election confirmed that the opposition party won the city mayoral seat despite objections from President Erdogan. The currency firmed up to 5.7450 against the dollar and could see some more activity before the election dust settles.
In contrast, the pound is losing ground as the battle for leadership of the Tory party becomes a two-horse race, with only Boris Johnson and foreign secretary Jeremy Hunt left in the running. The final vote is still weeks away and the uncertainty is set to keep the pound in limbo.
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